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CSX Cuts Outlook Despite CEO Saying "Expects No Impact From Low Oil Prices"
When CSX CEO Michael Ward arrogantly strode onto CNBC six weeks ago and proclaimed, he has "not seen any changes," suggesting everything's fine down to $30-35 oil and "expected no impact on crude shipments," we carefully suggested he was being a little careful with the truth. So, when today, the company issued the following statement:
- *CSX DOESN'T EXPECT TO REACH HIGH END OF CRUDE-BY-RAIL FORECAST
We could not help but wonder just how rapidly the deterioration had occurred or if, once again, a CEO had come on business media and lied through his teeth.
CSX CEO Michael Ward giving the all-clear 6 weeks ago...rail freight transportation company CSX's CEO Michael Ward stated 'unequivocally' that as far as the movement of crude by rail he has "not seen any changes," suggesting everything's fine down to $30-35 oil and "expected no impact on crude shipments."
And last week's tumble in rail loadings...
And now CSX cuts the 2015 outlook...
- *CSX DOESN'T EXPECT TO REACH HIGH END OF CRUDE-BY-RAIL FORECAST
- CSX had forecast avg daily crude trains of 4-4.5 in 2015 vs 3.5 in 2014 “given pricing pressure in the global crude oil market,” spokeswoman Melanie Cost says in e-mailed statement.
* * *
And this follows KSU's slashing its outlook.
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Expect layoffs at CSX as reality sinks in.
Lied through his teeth. The current state of the economy is one of the biggest "extend and pretend" ventures I've personally ever seen. The denial is thick. The lies are obvious. Classic ponzi at work, complete with a well oiled propaganda machine servicing it.
Personally ever seen? Dude how old are you? This is the worst extend and pretend since the fall of Rome.
Remember that college class "polish that turd 101"?
Once you are a CEO you are now sanctioned to lie. It comes in handy if you go into politics, cheat on the wife and don't give two shits towards anyone but yourself.
Be a prick or get pricked. The shitshow continues so let's get pricking along now.
that started six weeks ago --I commented on it then---
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Well, diesel prices sure as hell have not enjoyed the same drop...
Michael Ward is a lying piece of fucking shit.
FUCK YOU WARD!!!! ROT IN HELL YOU FAT FUCKING PIG!!!
No impact from falling BDI either. Move along.
He has a ton of shares to offload, so off course he lies to keep the share price up.
Like Countrywide CEO saying only 6 percent of our loans are subprime and even if they all went bad it would not be enough to bring us down.
No one can see the forest for the trees in a crash.
"he was being a little careful of the truth"
A better way of conveying that meaning, "he is being economical with the truth".
Ward was 'monkeying' with the truth.
Look at the chart a little more closely.
Coal shipments down 7.4%. IF this has anything to do with coal fired power plants being retired then it isn't coming back.
Farm products ex. grain down 13.2%. THIS is troubling. A symptom of international shipments of fooodstuffs being curbed by the West Coast Port strike or the Cali drought?
Chemicals down 10.1%. That is some serious tonnage of chemicals. I wonder what 'chemicals' and why. -Supply or demand issues?
Iron and steel scrap down 35.2%. This number is significant.
Mettalic Ores are UP 71.2% nearly covering the lost tonnage from diminished iron and steel scrap.
Something might be going on in the ores/iron/steel sector that bears closer examination.
Total carloads are down only 2.5% but traffic is down only .01%.
Maybe I am missing something; but, it seems like this is being overplayed. Fuel cost savings should more than offset .01% in shipments or even 2.5% carloads.
What is the real problem here? Recievables? REVENUE? Fuel hedges that have blown up?
Farm Shipments - not CA drought, but strong dollar stranding grain plus growers are holding hoping for a few pennies more in price. I am in the Ag industry and ship all modes of transportation. This guy made me want to throw up when he lamented how the fuel surcharges are going back to the customer. Oh ya, big ricken deal pal...you are giving me a buck fifty on a 100 dollar a ton rail rate...great concession. The fact is the people have raised rail rates through their gained monolpolies over the last 10 years like every company in the Ag sector done to their customers. My rate into Canada was about $42 six years ago and now it is $98. The Chinese now enjoy that business thanks to the RR. All the RR have pounded us with rate increases while the commodity cycle was booming, but the problem is now our products are worth 35 to 50 percent less and the RR is the only one making money. I am telling you guys, this Oil Patch implosion impact is not understood by very many people. Tank cars, Hopper cars are all in excess because of the shale boom. I talked to a short line operator last week and he was looking for a place to park a 1000 cars...does not sound like things are at warp speed fellas!
Here are real world numbers.....Yep Fed, no inflation here!
2006 2014 % BASE BASE INC RATE RATE 8.46 16.51 195% 17.65 38.29 217% 14.91 36.36 244% 21.23 40.02 189% 15.28 33.89 222% 35.97 66.90 186% 13.60 26.34 194% 11.49 36.29 316% 21.87 46.01 210% 17.28 36.17 209% 15.18 40.08 264% 46.57 81.47 175%